algeria-uk investment forum - tell group - may 2016 v4

Algeria- UK Trade and Investment Forum

Government Investment Priorities and Economic Overview

Yassine Bouhara – Chairman Tell Group

Algiers – May 2016

www.tellgroup.net

Member of

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ALGERIA

GROWING OPPORTUNITIES

Algeria - UK Investment Forum - May 2016

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BUILDING MACRO FUNDAMENTALS

• GDP: $213.5 bn (+3.8%)

• GNI per Capita: $5,490 (vs $4,752 for MENA)

• Forex Reserves: > $150bn

• Population: 39m (x2 since 1976)

• Ranked 2nd most competitive economy in

Maghreb and 7th in Africa (WEF)

EXCESS RESOURCES

• Major energy producer (Oil, Gas)

• Massive reserves of underground water

• One the world’s largest mining deposits

(ore, phosphate, rare earth)

• High potential for agricultural development

• Substantial human skills

STRENGTHENING

COMPETITIVENESS

• Sonatrach is the largest

company in both Algeria and

Africa, as well as the 11th

largest oil consortium in the

world by turnover ($67,8bn)

• One of the fastest rates of

mobile internet adoption

worldwide

• Successfully executed water

and sanitation UN program

• “Connect every 1000

inhabitants locality to optic

fiber” international award

AMBITIOUS DEVELOPMENT PLANS

• Leading logistics and transportation capabilities

• Energy and connectivity infrastructure (USD ½

tn invested in infrastructure in the last decade)

• One of the world’s most ambitious renewable

energy plans

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ALGERIA

ENERGY CHAMPION


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Country Characteristics:

Surface: 2.4 million sqm

10th largest country worldwide

Largest country in Africa

10th largest natural gas reserve worldwide (2nd in Africa)

16th largest crude oil reserve worldwide (2nd in Africa)

3rd largest shale gas reserve worldwide (1st in Africa)

One of the highest rates of insolation worldwide

12.2 Bn Barrels

proven reserves (OPEP)

4.5 Tn m3

proven reserves (OPEP)

Crude Oil Natural Gas Shale Gas

20 Tn m3

reserves (EIA)

Solar Energy

Solar potential of about

170 000 TWh/y

(avg of 5.7 kWh/m2/day)

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ALGERIA’S DNA

HYBRID ENERGY OPPORTUNITIES


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Oil and Gas Leader In

Mediterranean Basin

Opec Member

Significant Oil, Gas, Shale Gas Resources

Energy Provider for Southern Europe and Maghreb

Energy Track record

Expertise of O&G Exploration and Exploitation

Largest Oil Extracting Company in Africa

Energy Distribution and Management Track Record

Solid Infrastructure

Power Grid Covering 99% of Population

Trans-Mediterranean Pipelines

International Power Interconnections

Institutional framework

New Legislation and Energy Policies

Government Tax Incentives

Attractive Feed-in tariffs

Energy Diversification

Unique Potential for Wind, Solar and Hydropower

Multi Technology Government Renewable Energy Program

Long-Term Commitment

Renewable Energy Benefits

Value Chain Driver

Innovation and R&D

Job Creation

5

TELECOM

RISING INTERNET PENETRATION


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Algeria’s Internet Usage Evolution (in m)

0%

5%

10%

15%

20%

25%

30%

0

2

4

6

8

10

12

2000 2005 2007 2008 2009 2010 2012 2013 2014 2015

Internet Users Penetration Rate (RHA)

The massive arrival of low cost smartphones in the country is

expected to accelerate the internet penetration in Algeria

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AGRICULTURE

BOOSTING PRODUCTION


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The government agricultural development program targets to gradually increase agriculture

production from 9,9 mt recorded in 2015 to 15,8mt in 2019

Source: Trading Economics, Bank of Algeria

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MINING AND INDUSTRY

UNDEREXPLOITED MINING RESOURCES


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Algeria posses significant fossil

resources and abundant raw material

deposits, the most noticeable being :

9th largest reserves of iron ore

10th largest reserves of natural gas

(conventional gas)

3rd largest phosphate rock reserves

16th largest reserves of crude oil

A large part of the Algeria’s mining

potential is still unknown as most of

the geological studies has been carried

out in the 70’s and 80’s

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INFRASTRUCTURE

TRANSPORTATION AND LOGISTICS CAPABILITIES


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Rail Transport

• Algeria plans to multiplyits railway networkthreefold within the next 15years, to reach 10,000 kms(from 3,200 kms currently)

Airports

•: 17 International airports

•: 16 national airports

• Algiers will have a newinternational terminal in2018 with a capacity of 10million passengers / year,the estimated cost is DZD33 bn

Maritime Transport

• 51 marine infrastructure

• 11 commercial ports,• 2 oil ports,• 41 fishing ports

• New port of Cherchellwill have 23 quays anda capacity of 6.5mcontainers per year

Road Transport

• 112,039 km of roads,including 29,573 km ofnational roads

• The automobile fleet isexpected to reach 20mvehicules by 2025 vs8m currently

9Algeria - UK Investment Forum - May 2016

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SMART GRID REVOLUTION

TELECOM – ENERGY – DATA

Data Center

Renewable

Energy

Optic Fiber

Telecom

TowersPower Grid

Power

Power

Data

Data

Netw

ork

Network

Smart Grid benefits:

Power supply optimization

Country wide telecom and energy coverage

Online services development (Fintech, ecommerce,

government)

Qualified job creation

Renewable Energy = Catalyst

Spin off and Assetization of

telecom towers

Power Grid optimization

Optic fiber network integration

Data management


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RENEWABLE ENERGY INNOVATION

POWERING ENERGY-INTENSIVE INFRASTRUCTURE

Desalination Plants

Energy

represents 50%

of desalination

costs

Data Centers

Data centers consume

up to 3% of all global

electricity production

Controller Inverter

Renewables are becoming

increasingly mainstream, as

technology prices continue

to decline

Turb

ines

So

lar

CSPs

Po

wer

Grid

s


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FINANCING THE GROWTH

CAPITAL MARKET DEVELOPMENT

Algeria may soon have an entrant in the top 20 IPOs in the EMEA region this year following Sunday’s launch of a AD18.95bn (US$173m) offering

for Societe des Ciments de Ain El Kebira.

The achievement is significant considering the cement company will be only the sixth stock listed on the Algiers Stock Exchange and will be its

second IPO of the year.

The cement company is launching its fixed-price offer to raise funds to increase production capacity.

Bookbuilding began on Sunday and runs until June 13. On offer are 11.85m primary shares that will give a free-float of 35% on debut. Shares

are offered at AD1,600, which the company calculates as a 12.6% discount to cash flows for 2015–2020.

Institutions are expected to account for 60% of the deal and retail 40%.

Banque Exterieure d’Algerie is leading the deal with eight additional bookrunners. The bookrunners are Banque de Developpement Local,

Banque de l’Agriculture et du Developpment Rural, Banque Nationale d’Algerie, BNP Paribas El Djazair, CNEP Banque, Credit Populaire d’Algerie,

Societe Generale and Tell Markets.

SCAEK is currently wholly owned by Groupe Industriel des Ciments D’Algerie.

SCAEK’s IPO follows that of Biopharm in April this year. The deal, which was originally scheduled to complete in January, totalled AD6.25bn and

was also led by BEA. Shares were priced at AD1,225 and closed on Monday at AD1,400. Biopharm’s float is double the value of the combined

float of the four other listed companies.


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ALGERIA’S GOT TALENT

UNEXPECTED CHAMPIONS

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14

CONTACT US


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Tell Markets SPA3 Chemin les CrêtesHydra, Alger - 16035T: +213 21 60 02 60F:+213 21 60 02 65

www.tellgroup.net

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twitter.com/Tell_Group

www.linkedin.com/company/tell-group

ALGIERS

Tell Services DMCCIndigo TowerOffice 501JLT - PO Box 49159

T: +971 45 54 73 09

F: +971 45 54 72 92

DUBAI

Tell Capital SAS13 rue du Dr Lancereaux75008 ParisT: +33 153 578 285F: +33 153 578 291

PARIS

Tell LimitedEmirates Financial Towers,

Office 301

DIFC, PO Box 506983

T: +971 44 53 11 46

F: +971 44 53 10 59

[email protected]

Tell SARL7 av de Grande Bretagne98000 MonacoT: +377 93 10 54 37

MONACO ZURICH

Swiss Hedge Capital AGGerbergasse 5, 8001 Zürich, SwitzerlandT: +41 43 344 73 00

LUXEMBOURG

Tell Group S.A.128 Boulevard de la Pétrusse

L-2330 Luxembourg

+352 276 27856

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algeria-uk investment forum - tell group - may 2016 v4

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